Tax Structure Setup

• In order to manage tax in Cetec ERP, first set up your various taxing authorities. Then, group them together under tax groupings.
• To get started on this process, navigate to ADMIN Tax Maintenance Tax Authorities. By tax authorities, Cetec ERP means an individual unit of taxing entity which could be later grouped under a tax group. For example, the state of Texas and the city of Austin are two examples of taxing authorities.
• To add a taxing authority, click Add New Tax Authority, enter name, then Create. Fill in the Tax Percentage (keeping in mind that you may ultimately combine authorities under a group), and click Submit.
• Once the relevant taxing authorities have been added, you can mix and combine these taxing authorities to create tax groups that reflect real-life taxing responsibilities. For instance, you can combine three tax authorities: the state of Texas, the City of Austin, and Neverland County and have Cetec ERP sum up the total tax amount and track it, while also keeping a record of how much tax is owed to which tax authority.
• To set up tax groups, navigate to ADMIN Tax Maintenance Tax Groups. This screen displays all the existing taxing authorities you have entered into your system, as well as givng you the option to add or delete more tax groups. To add a taxing group, click Add New Group, enter name, then Create. Here, you will see all the tax authorities you have created. Select all the applicable tax authorities by pressing Ctrl (or if you are using a Mac) and clicking on them. After you are done, click Submit.
• The basic level at which tax is tracked is a customer ship-to address. This means that multiple ship-to addresses for one same customer can have different tax groups assigned to them.
• In order to access a Ship-To address for a customer, navigate to SALES Customers Customer List [Select a Customer].
• Scroll down to the section called Addresses. To add an address, click on Add Address, or you can edit an existing address by clicking Edit near the right side of the screen. Make sure that the type is either Primary Ship To or Alternate Ship To, then select a tax group from the pull-down list. Click Update.

Tax Hierarchy

• Tax is determined in the system by looking at three different settings in succession (Note that at any point in quote/order/invoice process you can manually override the default hierarchy by specifying what tax group is to be used).

• First, the customer tax setting will transfer over to quote/order/invoice. You can also manually override the customer data at each point in the order process (quote, order, invoice) and make them either taxable/non-taxable. If these are set to taxable, see below to determine the applicable tax group. If it is set to non-taxable, this overrides any other tax setting any the quote/order/invoice will not be taxed.

• Second, any quote/order/invoice that is set to taxable will look at the FOBCode used to see if they are marked as Taxable at Ship Point. If they are, then the warehouse data for the first line of quote/order/invoice will be used to determine the applicable tax group. If the terms used is not marked as Taxable at Ship Point, then see below to determine the exact tax amount.
• Third, any quote/order/invoice whose term is not set as Taxable at Ship Point will use the customer ship address to determine the applicable tax group
• If order is drop ship, the ship address is used to determine the tax group.

Data Setup

• Customer Record
• Navigate to SALES Customers Customer List [Choose a customer]. Click the pencil icon very near the top of the page, underneath the Back to List link.
• Here you can choose whether any quote/order/invoice for the specific customer will default to taxable or non-taxable. Note that you can override this setting at each level.
• If you scroll down further, you will see a section for Addresses. Here you can associate a tax group to a shipping address.
• FOB Maintenance
• Navigate to ADMIN Maintenance Data Maintenance FOBCode. Check/de-check taxable at Ship Point to indicate whether any quote/order/invoice used will get its tax group from the associated warehouse.
• LNAME Maintenance (Warehouse/Site)
• Navigate to ADMIN Maintenance Data Maintenance LNAME. Under the Tax Group ID column, indicate what tax group to associate.